Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential impact of restricting young people’s eligibility for the Universal Credit health element on a) poverty and b) employment.
We have launched The Young People and Work Report to investigate the persistently high numbers of young people out of work, education and training, with a holistic view of the welfare, health, skills and employment system. Led by former Health Secretary Alan Milburn, it will also identify areas for reform. The report will examine why increasing numbers of young people are falling out of work or education before their careers have begun. The Author will produce an interim Report this May, with a full and final report in September
To ensure we can take a decision in the round we are awaiting the Young People and Work Reports conclusions before making any decisions on whether to delay access to Universal Credit Health Element to 22.
The Universal Credit Act 2025, which came into force on 6 April 2026, delivered the first sustained, above inflation rise in the basic rate of UC since it was introduced. This means a little under four million households will benefit overall from government’s decision to increase the UC standard allowance, estimated to be worth around £760 annually in cash terms for a single parent aged 25 (£250 above inflation) or over £1195 (£400 above inflation) for a couple where one is aged 25 or over with children by 2029/30.
A little under 4 million households will benefit from the sustained, above-inflation increase to the UC standard allowance - worth around £295 in 2026/27, in cash terms around £110 above inflation, for a single person aged 25 or over and around £760, around £250 above inflation, by the end of the decade. For couples, where one member is aged 25 or over, it will increase by around an additional £465 this year, around £180 more than if up-rated by inflation alone.
Claimants who declared a health condition or disability before 6 April 2026 and are subsequently found to have Limited Capability for work and work-related activity (LCWRA), receive the higher rate - £429.80 per month. This applies even if the decision on their LCWRA entitlement was made on or after 6 April 2026.
In our Pathways to Work Green Paper we set out our Pathways to Work offer, backed by £1 billion a year of new funding by the end of the decade. Our Pathways to Work support offer will ensure a coherent and navigable offer of support, building on and bringing together initiatives such as Connect to Work, WorkWell and local Trailblazers.
Since July 2025, there have been around 1000 (full-time equivalent) Pathways to Work Advisors in place in Jobcentres across England, Scotland and Wales helping disabled people and people with health conditions towards and into work. This increased deployment will help ensure that everyone impacted by the recent changes to the Universal Credit Health Element is offered support. People affected by the changes, including young people, will be able to access a conversation about their needs, goals and aspirations; offered one-to-one follow-on support, and given voluntary help to access additional work, health and skills support that can meet their needs.